Supply Chain Management in the Automotive Industry

Automotive Supply Chain is a supply chain management that is specifically engaged in the automotive sector. This is closely related to complete cycle chain management starting from the supply of raw materials from suppliers to distribution of goods to consumers.

Check out a few things below to find out more about supply chain management in the automotive industry!

Procurement of Production Parts

In general, the supply chain of the automotive industry with other industries is similar. Several steps in product production sequentially starting from the procurement of spare parts, engine assembly, display design, to display design.

The challenge is to maintain the spare parts that are used so that they are always in accordance with the standards and lines of work or design of a product. The necessary parts must always be available. If not, then the order of work that has been done before can change.

Operator and Equipment Management

Workers or operators in each assembly part must know exactly what equipment and components they have to install in each car unit. Clearly, all basic information and mandatory installation standards have been arranged by the production department.

It is not only that, but the workers also need to know everything that is related to the use of tools to install spare parts to find out the correct torque settings for every single screw that exists.

Availability of Production Parts

In the automotive industry supply chain, the supply of spare parts is indeed a very important role. Procurement services must also be efficient and meet customer satisfaction aspects. Variations in vehicle parts and components must always have various preparations.

This is caused by the car model and configuration options of each motor vehicle owner. Availability of important parts must also be available to car owners for a long period of time. For example, some German car companies even supply original car parts that are more than 30 years old.

There are a number of things in the availability of spare parts production that must be standardized and integrated according to the logistics process of parts throughout the supply chain, which include estimates and planning of spare parts demand, connectivity of all partners to parts logistics systems, warehouse management of goods entering goods out, until the inventory of spare parts in the annual period.

Storage and Assembly Warehouse

Finally, supply chain management and assembly is no less important. Some automotive companies often separate the two. To be sure, all existing warehouses are obliged to meet national and international warehouse standards so that the entire supply chain can run smoothly.

One of the best industrial locations with a wide choice of warehouses in Indonesia is in Karawang New Industry City (KNIC) located in West Java. There are several factors why KNIC must be considered as the location of the automotive industry.

Some of them are strategic positions that are among the six transportations infrastructure so as to facilitate the mobility of shipping goods and the concept of an integrated world-class industrial city with a variety of infrastructure that is also world class. All of these will be the success of a company in producing their best products.

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